MOD Resources Limited provided operational update ended December 31, 2018. During the fourth quarter, the company made substantial progress on the T3 Copper Project Feasibility Study, including submission of the draft Environmental and Social Impact Assessment to the Department of Environmental Affairs. Furthermore, the company completed metallurgical and engineering test work programs required for the design of the process plant. Results identified opportunities to reduce operating costs through lower power consumption and lower reagent requirements. Exploration continued across selected priority drill targets, returning good grades and widths of copper mineralisation notably at the A4 Dome, only 8 kilometres from the T3 Copper Project. Initial drilling at the T23 Exploration Project area, 100 kilometres west of the T3 Copper Project was also successful in intersecting disseminated copper mineralisation at shallow depth, to be followed up during 2019. Subsequent to the end of the quarter, the Company announced a capital raising of $15 million through a combination of a share placement and a rights issue. The company also received an unsolicited, non-binding, indicative, conditional proposal from Sandfire Resources NL equivalent to $0.38 per share for 100% of MOD shares, which the Board believes undervalues MOD's assets. During the fourth quarter, MOD was active at four key projects being the T3 Open Pit, T3 Underground, T3 Expansion Project and the T20 Exploration Project. Notably, the Company completed a number of significant steps associated with the advancement of the T3 Copper Project, including: Finalised 100% acquisition of the T3 Copper Project; Submitted the draft Environmental and Social Impact Assessment ("ESIA") to the Department of Environmental Affairs ("DEA"); Made major progress on the Feasibility Study which is on track for completion at the end of the first quarter of 2019; Received two-year extensions for 18 key MOD prospecting licenses, including the T3 Copper Project; Progressed T3 Copper Project funding discussions and raised $15 million to support T3 activities. Additionally, during 2018, the Company completed a total of 148 drill holes, including 41 drilled during the fourth quarter across selected priority targets. The Company has successfully used airborne electromagnetic ("EM") surveys to identify priority drill targets, including the A1 and A4 Domes within the T3 Expansion Project. Early stage drilling at these targets has resulted in the intersection of significant copper mineralisation with very encouraging grades and widths within the A1 and A4 Domes (near the T3 Copper Project). Shallow, visible copper intersected at the T23 Dome on the northern edge of the large T20 Exploration Project also provides further confidence in the district-scale opportunity within MOD's extensive holdings. During the fourth quarter, the Minister for Mineral Resources, Green Technology and Energy Security granted two-year extensions for 18 key prospecting licences covering T3 Copper Project, the T3 Expansion Project and the highly prospective T20 Exploration Project. 17 of these licences were transferred to Tshukudu Exploration Pty Ltd, the exploration subsidiary of the MOD and Metal Tiger JV. The remaining licence was retained in Tshukudu Metals Botswana (Pty) Ltd. and includes the T3 Copper Project. Importantly, 100% of the area of all these 18 licences was approved to be retained. The extension of these licenses has provided the Company with certainty of title for the T3 Copper Project as it continues to advance towards a decision to mine in the first half of 2019. The extension of these critical licenses also serves as an indication of the strong and on-going support that the Botswana government has for the in-country activities conducted by MOD and Tshukudu. During the first quarter of 2019 the primary focus of the Company will be the completion of the T3 Copper Project Feasibility Study ("FS"). Following completion of the FS and approval of the ESIA, the Company will be in a position to apply for the T3 mining licence, targeted for approval before the end of the first half of 2019. The Company has commenced infill drilling of part of the T3 Copper Project resource to upgrade the early stage production area of the planned mine into the higher confidence, JORC compliant Measured Resource category. The Company is also planning follow-up drilling of very encouraging shallow mineralisation along the T4-T23 Dome area, will undertake initial shallow drilling of the extensive Cu-Zn soil anomalies within the adjacent T20 Exploration Project and conduct follow-up drilling of the A4 Dome as a potential satellite resource to T3.